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New York Gets $10 Million in Pension Fund Kickback Settlement

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By Jason Beahm on January 05, 2011 5:51 AM

The New York Attorney General's office and former Obama "auto czar" Steven Rattner have settled their case for a $10 million fine. Rattner allegedly participated in a quid pro quo pension fund kickback scheme with officials who directed money from the state's pension to Quadrangel, according to CNN Money. In addition to the fine, Rattner has also been banned from appearing in front of another pension fund for a period of five years.

Steven Rattner had stepped down from Quadrangle early last year after Obama brought him in to oversee the reorganization of the struggling U.S. auto industry. However, Rattner's time with the government was short lived, as he stepped down from the position after word got out regarding his alleged participation in the pension fund kickback scheme.

New York Attorney General Andrew Cuomo applauded the outcome, "The state pension fund is a valuable asset held in trust for retirees and supported by taxpayers ... I believe we have been able to help restore and protect the integrity," he said.

Rattner also said that he was pleased with the outcome, "I am pleased to have reached a settlement with the New York Attorney General's Office which allows me to put this matter behind me ... I respect the work of the Attorney General and his staff to ensure that the New York State Common Retirement Fund operates properly and in the best interests of New Yorkers."

Cuomo has obtained eight guilty pleas in the pension fund kickback probe as well as over $170 million in settlement payments, ABC reports. In addition, 19 firms have agreed to a code of conduct governing going forward for pension fund dealings.

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